When Economists Say the Price Elasticity of Supply Is Elastic

question 200

Multiple Choice

When economists say the price elasticity of supply is elastic, they mean that

• A) suppliers are willing to produce much larger amounts of their good.
• B) suppliers are willing to produce only a small amount more of their good.
• C) consumers are willing to purchase much larger quantities of the good.
• D) the change in quantity supplied is relatively small compared to the change in price.

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Definitions:

Examples

Specific instances used to illustrate a point, concept, or method.

Use

The act of employing something for a particular purpose or in a specific manner.

Chattel Mortgage

A loan arrangement where personal movable property is used as security for a debt, but the borrower retains possession of the property.

Debtor

An individual, company, or other entity that owes money or other forms of financial obligation to a creditor.